New issue pipeline opens with bonds from Bahrain, Hong Kong, Sharjah; most EM assets weaken

By Christine Van Dusen

Atlanta, Sept. 10 – Bahrain, Hong Kong, the Emirate of Sharjah, Dubai’s Emirates NBD, Chile’s Empresas CMPC SA and Poland sold notes on Wednesday, which – along with the current rate environment – made for a busy trading day for assets from the Middle East.

“Very active couple of days, flow-wise, with very good flows in Dubai and Abu Dhabi,” a London-based trader said. “Even some in the Kuwaiti complex, with two-way on Kuwait Projects Co.”

Bonds from Saudi Arabia were “a little lackluster,” he said, “although Dar al-Arkan Holdings is feeling a little offered.”

In other trading, the new issue of 3 7/8% notes due 2021 from Turkey’s Arcelik AS – which priced this week at 99.25 to yield mid-swaps plus 321 basis points – was spotted a little bit below re-offer, he said.

“But generally holding up reasonably well, given the overall weaker tone,” he said.

All of this came against the backdrop of some stability in Ukraine, where a ceasefire with pro-Russian troops seemed to be holding on Wednesday.

Bonds from Ukraine have traded poorly so far this week, said Svitlana Rusakova of Dragon Capital.

Other bonds from emerging markets were mostly weaker on Wednesday, a London-based analyst said.

“Russia and Turkey credit default swaps are both 3 bps wider this morning, while Central and emerging Europe bids have largely disappeared,” he said.

© 2015 Prospect News.
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